SPY - Bullish Breadth Overrides The Bear's Bubble

2024-07-17 11:00:00 ET

Summary

• Bear camp warnings about inflation, growth, and the tech stock bubble have not panned out.
• Retail sales for June were strong, indicating a Goldilocks economic report and potential for a soft landing.
• Market improvement in breadth suggests that economic expansion is strong with the potential for significant upside in the marketplace.

The bear camp warned us for months about "sticky" inflation and the higher-for-longer interest rates that would accompany it, until the disinflationary trend resumed, following a pause during the first quarter of the year. They then pivoted to warnings about growth, which softened dramatically from last year's levels, indicating that a recession was on the horizon, but that hasn't panned out....

For further details see: